Broker network Steadfast has unveiled a significant increase in net income despite challenging market conditions, and will set up a Singapore cluster group within weeks as it targets further growth in Asia.

Net profit attributable to shareholders for the year to June 30 was $73.48 million, up 75% on the previous year, and gross written premium increased 4.2% to $4.5 billion.

While much of the growth can be attributed to acquisitions, there was also organic top-line growth of 1.5%.

Thirteen acquisitions were made during the financial year, including that of Insight Group, while major additions from the previous year, including the Calliden and QBE agencies, performed above expectations.

“There is still a pipeline of opportunities coming our way,” CFO Stephen Humphrys told insuranceNEWS.com.au. “There is no let-up.”

Asia offers “exciting” longer-term growth, and MD and CEO Robert Kelly confirms a Steadfast cluster group in Singapore is imminent.

“We are in the middle of finalising it,” he told insuranceNEWS.com.au. “Eleven brokers have signed agreements to set up a cluster, and we have Monetary Authority of Singapore approval.

“It should be launched by the end of September or October this year. It’s about taking our system into Asia and getting a footprint in a jurisdiction that is reliable.

“We’ll make Singapore successful and learn from our mistakes there, before taking it into other areas.”

Steadfast expects the local insurance market to harden from June next year.

“The market has definitely flattened over the past 12 months, stupid pricing is waning significantly,” Mr Kelly said. “We think the clock has turned. The idea of just going out and throwing away capital to get market share is a short-term grab.”

Two new strategic initiatives have been introduced, which are expected to further improve the group’s profitability.

“The first is the Steadfast Client Trading Platform,” Mr Kelly said. “This platform operates on the Virtual Underwriter and is expected to deliver improved product, service and efficiency, with a panel of strategically aligned insurer partners.

“The second is the Steadfast Underwriting Agencies London ‘super’ binder, which rationalises and consolidates our Lloyd’s market placements into a single binder with a select number of carriers.

“We have brought in Lloyd’s capacity to write bread-and-butter Australian business.”